top of page

Market Comment - July 2024

Updated: Jul 15

Changes to the Bright-Line Property Rule:

 

Effective July 1, 2024, the bright-line property rule is undergoing significant changes as below:

 

  • For properties purchased between March 29, 2018, and March 26, 2021: The bright-line rule applies if the property is sold within five years of purchase.

  • For properties sold after July 1, 2024: The bright-line rule will apply only if the property is sold within two years of purchase.

  • For properties purchased on or after March 27, 2021: The bright-line rule applies if the property is sold within five years for qualifying new builds

  • For other residential properties, the rule applies if sold within ten years

 

 

Proposed Changes to the Residential Tenancies Act 1986:

 

Recent amendments and proposed changes aim to restore certain provisions and encourage investment in the rental market:

 

  1. 90-Day No-Cause Terminations: Reinstates the ability for landlords to end periodic tenancies without providing a specific reason.

  2. Amendment to Section 60A: Allows fixed-term tenancies to end without providing a reason.

  3. 42-Day Notice Period: Reintroduces the 42-day notice period for landlords ending periodic tenancies if: - The landlord or a family member intends to move into the property. - The property is typically used to house employees, and the landlord wants to move in an employee. - The property is under an unconditional sale agreement requiring vacant possession.

  4. Tenant’s Notice Period: Restores the tenant’s notice period to 21 days for ending a periodic tenancy.

  5. Ending Fixed-Term Tenancies: Reinstates the landlord’s ability to end a fixed-term tenancy at the end of the term without needing a specific reason.

 

 

Legislative Process and Timeline:

 

  • The first bill was introduced and had its first reading in May 2024

  • The bill has been sent to the Social Services and Community Committee for review

  • Submissions opened on May 22, 2024, and will close on July 3, 2024

  • If passed, the new law could come into effect by late 2024

 

 

Current Market Conditions:

 

Supply has increased for the second month in a row compared to the same time in 2023, and with fewer people attending viewings rent levels are stabilising. While a flat market over winter is to be expected we do feel the market has plateaued. Overall we are seeing weak enquiry as people just hold-off and hunker down. We expect to see an uplift in the spring.

Comments


bottom of page